In the latest trading session, Diamondback Energy (FANG) closed at $138.42, marking a +2.89% move from the previous day. The stock's change was more than the S&P 500's daily loss of 0.13%. At the same time, the Dow lost 0.27%, and the tech-heavy Nasdaq lost 0.07%.
The energy exploration and production company's stock has dropped by 3.58% in the past month, falling short of the Oils-Energy sector's gain of 2.71% and the S&P 500's gain of 2.71%.
The upcoming earnings release of Diamondback Energy will be of great interest to investors. The company is expected to report EPS of $2.79, down 17.46% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $3.33 billion, up 25.79% from the prior-year quarter.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $12.81 per share and revenue of $14.02 billion, indicating changes of -22.69% and +26.7%, respectively, compared to the previous year.
Investors should also pay attention to any latest changes in analyst estimates for Diamondback Energy. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 3.28% lower within the past month. Diamondback Energy is holding a Zacks Rank of #3 (Hold) right now.
With respect to valuation, Diamondback Energy is currently being traded at a Forward P/E ratio of 10.51. This represents a premium compared to its industry average Forward P/E of 10.35.
The Oil and Gas – Exploration and Production – United States industry is part of the Oils-Energy sector. Currently, this industry holds a Zacks Industry Rank of 179, positioning it in the bottom 28% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
